CEB likely to spend Rs. 3 b on electricity bills

Friday, 31 July 2020 00:20 - - {{hitsCtrl.values.hits}}

CEB says revenue hit necessary to give relief for March-May power bills
Power monopoly pledges to follow Cabinet directive
Despite revenue hit from COVID-19 expects losses to reduce from projected Rs. 90 b to Rs. 63 b

By Nuwan Senarathna

The Ceylon Electricity Board (CEB) yesterday estimated that charging the same amount in February for the electricity bills of March, April and May to assist the public struggling financially due to the COVID-19 crisis is likely to incur a cost of Rs. 3 billion.

CEB Chairman Eng. Vijitha Herath - Pic by Lasantha

Speaking to reporters, CEB Chairman Vijitha Herath noted that people who had already settled their bills in the period between March and May will have their excess payment reduced from their future bills.

He noted that this decision was taken after considering a number of requests by consumers.

“The CEB has already decided to match the March, April and May bills to February. I have noticed that domestic electricity consumption increased due to the lockdown. Therefore the Government has decided to provide relief for consumers as this is a special circumstance,” he said.

Herath said the CEB decided to temporarily halt disconnecting of power connections over non-payment of bills as the COVID-19 pandemic affected household incomes. The decision also received Cabinet approval on 23 July.

“Electricity bills will be calculated according to the units consumed and those that consume less will be charged lower and those that have high consumption patterns will be charged higher. This system was introduced to provide concessions for households with less electricity consumption. Therefore we will continue to supply electricity for lower prices that use a less number of units.”

The CEB Chairman noted that last year the CEB incurred a loss of Rs. 85 billion and projected a loss of Rs. 90 billion loss for 2020. However, due to the Government’s restructuring programs the efficiency of the CEB has been increased, he claimed. This together with a decrease in electricity consumption due to COVID-19 is expected to reduce the loss to Rs. 63 billion.

“The Government has provided support for the CEB and a fund has been established to collect taxes from fuel imports and these funds have helped to reduce this year’s losses. Therefore the Government has decided to extend a Rs. 3 billion relief program to consumers during this difficult time.”